Size Still Matters May 2020
One intriguing development in the Canadian stock market since the outbreak of COVID-19 has been the reaction of investors who have not succumbed to panic and the temptation to flee equities. While there were very few outright winners, there were stocks that sidestepped the outright worst declines if you were...
Déjà Vu on the Way? April 2020
History is a fickle guide. It has a way of repeating itself (although never in exactly the same way) and it could be about to deliver a welcome reprieve from the Canadian stock market turmoil in the form of a potential turning point in what has been a one-sided slide...
An Average Decade? March 2020
Remembering the sentiment back in December 2009, not many investors were thinking that the next decade was going to be particularly prosperous for the world’s stock markets.
Equity Yields Beat Bonds February 2020
A buy signal may be flashing in the stock market, particularly relative to bonds. When you consider the state of the bond market, stocks look much less expensive. Yields on risk-free Government of Canada debt are near historical lows, which should be taken into consideration when valuing stocks because bonds...
Copper/Gold Ratio January 2020
Strictly speaking, gold and copper prices do not have any fundamental relationship to each other. However, when their prices are connected, they produce a marvelous indicator of how the markets and interest rates in particular are doing.
Presidential Election Changes December 2019
Historically there has been no significant difference between the performance of the stock market regardless of which political party was holding the U.S. presidency.
SPOOKY PERFORMANCE November 2019
While Halloween season may have passed, investors could be in for some very spooky performance going forward. Historically, when January to October has been good for the Canadian stock market, that momentum carries forward to strong returns for the remainder of the year.
SURGING OIL PRICE = GOOD EQUITY MARKETS October 2019
Contrary to popular belief, on a global scale there is very little correlation between the stock market and oil prices. Generally stock prices rise and fall based on future corporate earnings reports, intrinsic values, investor risk tolerances and many other factors.
ENERGY STOCKS VS. OIL PRICES September 2019
Investing in energy stocks can be a feast-or-famine experience. The highs are sheer bliss while the lows can be excruciating. It seldom seems as though there is any middle ground. There is, of course, one major catalyst that works to exaggerate the moves to the upside or downside. The price...
BETA VS. RETURN August 2019
Diversification by spreading monies across multiple asset classes is the cornerstone of modern investment theory. If investors choose the right classes then they can limit potential losses without compromising potential gains. In this era of high volatility, investors are constantly looking at different parameters such as earnings per share growth...